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Int. J Sup. Chain. Mgt
Vol. 6, No. 2, June 2017
Technical and Economic Feasibility Study of
Coconut Shell Charcoal Production as
Precursor to Activated Carbon in East Coast
Malaysia
Wan Muhammad Noor Sarbani Mat Daud#1, Shariman Mustafa#2, Syed Radzi Rahmadulla #3, Saiful
Anwar bin Che Ghani *4, Anwaruddin Hisyam **5
#
Faculty of Industrial Management, Universiti Malaysia Pahang, Malaysia
1
2
3
sarbani@ump.edu.my, shariman@ump.edu.my, syedradzi@ump.edu.my
*
Faculty of Mechanical, Universiti Malaysia Pahang, Malaysia
4
**
anwarcg@ump.edu.my
Faculty of Chemistry and Natural Resources, Universiti Malaysia Pahang, Malaysia
5
ahisyam@ump.edu.my
Abstract— The most common precursors used for the
preparation of activated carbons are organic
materials that are rich in carbon. The abundance and
availability of coconut shells make them excellent
sources of raw materials for activated carbon
production. A survey has been conducted to identify
locations for the supply of coconut shells. The survey
has been conducted around a coastal village of
Beserah, Kuantan. The cost calculation for two
methods were considered, which is to buy from
coconut supplier or to do self-collection at the coconut
milk entrepreneurs location. Two carbonisation
methods were used in this study which is traditional
drum method and Top-Lit up-Draft (TLUD) drum
method. The results from the both methods were
observed. The coconut shell charcoals produced were
sent to activated carbon manufacturer for evaluation.
The coconut shell charcoals from the different
methods were priced differently. This is mainly due to
different quality of the charcoals. A calculation of
possible cost and sales from a small production plant
was simulated to know whether a profitable
production plant could be set-up.
Keywords— Activated Carbon, Coconut shell, charcoal,
Top Lit Up Draft, TLUD, precursor, carbonisation,
pyrolysis, Pahang East Coast Malaysia
1.
Introduction
The most common precursors used for the
preparation of activated carbons are organic
materials that is rich in carbon[1]. Nowadays, coal
______________________________________________________________
International Journal of Supply Chain Management
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end lignocellulose biomass is two major sources for
the production of commercial activated carbons [2,
3]. The abundance and availability of agricultural
by products make them excellent sources of raw
material for activated carbon production [4]. A
good example of tropical agricultural by products
that has been successfully used in the preparation
of activated carbon is coconut shell [2, 5]. From
1980 to 2010, the total coconut production
worldwide increased rapidly from 35 to 50 million
tonnes [5]. Coconut shells are suitable for preparing
microporous activated carbons due to their
excellent natural structure and low ash content [6].
According to Freedonia.com, World demand for
activated carbon is projected to rise 8.1 percent per
year to 2.1 million metric tons in 2018, driven by
tightening pollution regulations and rising demand
from manufacturing [7]. The demand is so high that
make it very attractive for us to get involved.
Given all the benefits we can get from activated
carbon, there is high demand for coconut shell
activated carbon. A few big companies are
manufacturing the materials. In principle, the
methods for preparing an activated carbon can be
divided into two categories: physical activation and
chemical activation. In the physical activation, a
raw material is first carbonized and the carbonized
material is secondary activated by steam or carbon
dioxide, air or their mixtures, i.e., there are two
steps: carbonization step and activation step[8]. It is
a normal practice for the manufacturer to buy
coconut shell as raw material or buy the carbonised
charcoal. Therefore there exists a huge demand by
this manufacturer for the raw material of coconut
shell and coconut shell charcoal. At the moment
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most of the raw materials are now mostly imported
from Indonesia or from Bagan Datoh, Perak.
Coconut meat is processed into desiccated
coconut, instant milk powder, and instant coconut
cream powder[9]. From the writer’s observation,
there are many small scale entrepreneurs in East
Coast Malaysia who producing instant coconut
milk with a lot of coconut shell waste. However so
far the coconut shell is not fully exploited. This is
mainly because they do not know the value of the
coconut shells. Most of the coconut shell is just
thrown away as waste or simply burned away.
This research aimed to make full use of this
waste into useful activated carbon products. It will
help to reduce coconut shell waste and hence leads
to a cleaner environment. Other than that the
selling of coconut shell charcoal will help small
scale coconut milk entrepreneur to increase their
income generation.
2.
Economic Feasibility
(Costing and Pricing)
2.1
Costing
2.1.1
Buy coconut
collectors
shell
from
other
After doing a survey around Pahang and
Terengganu, It found out that there is nobody in the
business of collecting coconut shells.
Table 1. Typical Costing by Coconut Dealer
Coconut shell collection cost based on 1
tonne/trip
RM/tonne]
However there are some coconut dealers doing
coconut shell collection as by product or for extra
income. The dealer normally acts as the distribution
centre of imported coconuts. They deliver the
coconuts to the coconut milk producers and
markets nearby. On the way back from the dealers
they would be able to collect coconut shells on the
way back from the markets or coconut milk sellers’
location. From the survey of 5 coconut dealers,
they are willing to sell coconut shells at the price of
RM190 – RM200 per tonne.
2.1.2
Self Collection
Alternatively, coconut shells could be collected on
our own from the coconut milk entrepreneurs or
from the markets. The quantity coconut shells
produced every day is significant. To start our
study we have started the search of coconut shells
around coastal village of Beserah. After initial
survey, we found 5 coconut milk producers which
each producing around 300kg/week of coconut
shells. From this, we estimate that Beserah Area is
producing 1500 kg / week or 6000 kg / month.
We also expand the estimation to another area
nearby the planned location of the plant in
Kuantan. The estimation for the coconut shell
availability around the planned location is as in
Table 2.
Table 2. Coconut Shell Availability
Location
Quantity [kg/month]
Cherating
5000
Balok
3000
Pusat Bandar
6000
Beserah
6000
Indera Mahkota
6000
Jaya Gading
3000
Worker
60
Fuel
20
Chini
6000
Lorry rental
70
Pekan
4000
Total Collection
150
Coconut shell shipment cost
Kemaman
6000
Total
45000
Bulldozer to lift the coconut shells
10
2.2
Trailer
40
Total Shipment
Overall cost to reach processing
plant
50
The price of the product is determined by the
quality of the charcoal. The quality criteria for the
charcoal are as follows:
Charcoal Price
200
Hardness -> the harder the material is better
Water content -> the lower water content is better
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6, No. 2, June 2017
Carbonisation ->
> not less nor overbake. The
carbonisation or baking process should produce
evenly baked coconut shells. Unbaked or
overbaked is unwanted.
Purity ->
> The charcoal should be fully coconut
shell only. The existence of unwanted charcoal
such as charcoal from the husk would reduce the
price. This is becausee the charcoal from the husk
will become dust during crushing process.
The quality level of the products was judged by
the rule of thumb, based on the criteria mentioned
above. The price range would be around RM
600/mt to RM 1000/mt.
3.
Design and Methods of Charcoal
Kiln
Two methods used in this study, which is
traditional method and Top Lit Up Draft (TLUD).
(TLUD)
3.1
Figure 2. Picture of traditional method
Traditional Method
In the traditional method, the coconut shell is put at
the bottom of the drum and fired. Once the fire is
stable, more coconut shells is being put on top,
once the coconut shell catch fire, more coconut
shells put on top. This step was repeated until the
drum is full. After all the coconut shells caught on
fire, the drum was air tight closed. This method is
very
ry simple to conduct, however it produces a lot
of smoke.
3.2
Top Lit Up Draft (TLUD)
Figure 3. Schematic Top Lit Up Draft
Figure 1. Schematic traditional method
TLUD kiln consist of the main drum with holes at
the bottom, after-burner
burner and chimney. The firing
was started from top not from the bottom like the
traditional method. In the beginning, the drum is
filled with coconut shells until full. At the top of
the drum,
rum, fire was started. The heat released from
the top layer causes lower layers to pyro
pyro-lyse,
which means that volatile matter is released from
the coconut shells in an inert atmosphere [10, 11].
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This process is called a migrating pyrolytic front
[10, 12]. After stable fire was set-up. After-burner
and chimney was put on top of the drum. In the
after-burner, the gas was burnt and flown out of the
chimney. The gas came out of the chimney was
clean, with only little smoke could be observed.
Figure 5. Charcoal produced using traditional
method
4.2
Figure 4. Picture of top Lit Up Draft Furnace
4.
Results and Discussion
4.1
Traditional Method
Traditional method trial was conducted. The firing
process took around 1 and half hour and another 2
hours for cooling. Someone needs to monitor the
process and adding new coconut shells once the
coconut shell inside catch fire. As expected, the
firing process produced a lot of smoke. The product
however is evenly baked with high quality and can
be sold at upper range of the price scale.
After weighing the weight of coconut shell
input and compared to the output weight. The
weight of charcoal out of the trial is about 1/3 of
the weight coconut shell before bake.
TLUD Method
Trials using TLUD method also has been
conducted. This method needs a little extra effort to
put after burner and chimney on top of the drum.
As expected, the firing using TLUD is very clean
and quick. The firing process took just around 45
minutes. 3 hours in total including the cooling
period.
The charcoal produced however less
impressive. The weight loss is quite high. Charcoal
Produced weigh only 1/5 of its original weight. The
structure is very porous and the hardness is lower.
The charcoals could be easily broken by a little
force. This has caused a little concern that it might
crush into dust in the next crushing process.
Figure 6. Charcoal produced using TLUD
Due to lower quality of the charcoal, it could be
sold at lower range of the price scale.
4.3
Economic Feasibility Calculation
The operation cost for the charcoal production was
calculated. Worker salary, fuel consumption,
utilities, lifter and delivery cost were included. To
reduce delivery cost, the products would be piled
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up until one full load of trailer is achieved. It is
estimated that one trailer can bring 16-18 mt per
trip.
4.3.1
Traditional Method
With the daily collection and baking of coconut
shells of 1.8 mt /day, the operation costs are:
Fixed Cost
Quan
tity
Cost/
unit
2
1000
2000
Electricity
1
100
100
Water
1
100
100
Land rent
1
500
500
54.44
2450
Item
Operator
Salary+EPF+SOCSO
Total
Variable Cost
Coconut shell (mT)
45
JCB/forklift Cost
1
100
100
Delivery to Customer
1
1500
1500
Total Cost
6750
The quality of the product using this method is
good and can be sold at higher range of the price
scale. For the benefits of calculation, we use RM
900 / mt as the selling price.
Sales
Price Charcoal/mT
Weight/trip (mT)
Total Sales
900
16
13500
The gross profit we could earn monthly using this
method is around RM 6750 / month.
4.3.2
The gross profit we could earn from using this
method is then –RM 1350. Basically we were
going to lose money if the production plant
produces using this TLUD method.
5.
Conclusion
Based on the survey and the trials conducted, we
can conclude that it is feasible to open up a plant
around Kuantan. The production must use
traditional method since it produces higher quality
charcoal and therefore profitable. This plant
however should be located outskirt of town and far
from resident area since it will produce some
amount of smoke. This project could offer at least 1
entrepreurial position for degree level staff and 2
positions for people without degree.
To open up a production plant using TLUD
method is not possible because the revenue from
the sales at lower grade is not enough to cover
operation cost. However TLUD method is useful to
be applied by the coconut milk entrepreneur
themselves. All they need was to bake the coconut
shell and sell it. Even it sells at lower price; they
still generate extra income at almost no extra effort
and no extra cost. They can do nearby their
premises because this process does not produce
heavy smoke as baking using traditional method.
Acknowledgments
The authors are grateful to Encik Zainal from
Beserah for supporting this research. He supplied
the coconut shells for free and shared his
knowledge in the business situation. The author
also would like to thank Encik Muhammad Fairuz
from Ata Rashi Enterprise for the support in the
collection and transportation of the coconut shells.
TLUD Method
By using this method, the ratio coconut shell to
charcoal output is 1:5. The quality of the charcoal
is also less. The calculation for production cost
using this method is the same as traditional method
which is around RM 6750 per month. However
since the quality of the product is of lower grade
the selling price is different. For calculation
purpose the price taken is of RM 600 / mt.
Sales
Price Charcoal/mT
Weight/trip (mT)
Total Sales
600
16
5400
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